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Sprint Nextel is increasing its monthly service fees by $10 a month for smart-phone customers, coming closer in cost to rivals Verizon and AT&T.

Sprint announced the increase of its postpaid rates by an extra $10 per month "Premium Data add-on charge" to activations of smartphones beginning Jan. 30.

"The charge will assist Sprint in offering simple and affordable unlimited plans for its customers while maintaining a wireless network able to meet the growing appetite for a richer mobile experience," the company said.